This meeting sought to demystify the concept of actuarial value, review the role of actuarial value in the Affordable Care Act, and hone in on the challenges of creating a measure that can be used to compare health plans.

Studies Cited:
Beginning 2014, the Patient Protection and Affordable Care Act (PPACA) establishes four levels of coverage based on the concept of “actuarial value,” which represents the share of healthcare expenses the plan covers for a typical group of enrollees.NEW STUDY:Early Consumer Testing of the Actuarial Value Concepts, Consumers Union and the Kleimann group, September 2011Consumers are not familiar with the concept of actuarial value yet they will be asked to use the measure in 2014. This report explores how consumers respond to various actuarial value concepts in use today. What the Actuarial Values in the Affordable Care Act Mean (PDF), Kaiser Family Foundation, April 2011This report explores how actuarial value estimates vary depending on the estimating techniques and databases used. As a result, the coverage provisions (like deductibles) associated a given level of actuarial value can vary significantly. Actuarial Value under the Affordable Care Act (PDF), American Academy of Actuaries, July 2011This report explores the issues associated with developing a measure of actuarial value that can be used to distinguish plans between benefit coverage tiers while also being administratively feasible.

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